As winter descends, households are redefining the way they spend their discretionary budgets. The focus has shifted towards optimizing value through upgraded stays, curated experiences, and quality service enhancements, rather than indiscriminate expenditure. According to CNBC TV18, this transformation reflects a broader movement towards value optimization, moving beyond mere price considerations.

Stable Weekday Demand Stabilizes City Prices

Jaideep Ahuja, Managing Director & CEO of Ahuja Residency, explains that weekday corporate demand is strong, stabilizing at up to 102% of pre-pandemic levels. He predicts varied revenue outcomes this season. Under conservative budgets, revenue may remain flat, while an optimistic scenario could reveal a 10–12% increase. Nevertheless, steady business demand suggests that room rates in metropolitan areas are unlikely to decrease, thus impacting almost anyone intending to spend winter stays in metro cities where price flexibility is limited.

Emphasis on Value-Added Experiences

In lieu of slashing headline tariffs, hotels are crafting inclusive packages offering add-on utilities. “Curated winter bundles—like F&B credits and exclusive experiences—are on offer,” mentions Ahuja. This approach allows consumers more utility without necessitating significant tariff reductions, ultimately shifting household spending from fixed rates to optimizable components like dining and experiences.

Discretionary Spending Focused on Upgrades and Wellness

The strongest winter spending emerges from affluent leisure segments, DINK households, wellness-focused consumers, and aspirational Tier-II and Tier-III families. According to Ahuja, these groups are directing larger budgets toward upscale accommodations and immersive add-on options, aligning with a growing desire for unique and enriching experiences.

GST Changes Reshape the Cost Equation

A revised GST slab—offering 5% without input tax credit—affects rooms priced up to ₹7,500, making mid-scale rooms more feasible. However, the absence of input tax credit leads to higher operating costs potentially surfacing in additional services such as dining or wellness, resulting in a higher overall trip cost despite stable room rates.

Peak Season Drives Budgets Higher

Nikhil Sharma of Radisson Hotel Group notes a broad-based demand surge this winter, with confident traveler spending on accommodations and leisure. Major cities like Hyderabad, Mumbai, and Bengaluru are witnessing their best-ever occupancy rates and revenue per available room (RevPAR) performances. This trend indicates fewer low-priced alternatives during peak dates, pushing discretionary budgets higher especially for last-minute and festive-season stays.

In conclusion, as reflected in current consumer behavior, this winter is all about value, experience, and the strategic reallocation of spending towards what truly enriches the stay. Households are navigating the seasonal landscape with discernment, making strategic choices to embrace the most significant benefits of their winter escapades.